Cryptic crossword clue
  It could be a sea anemone, parrot said softly 5

The most common and most likely answer to this crossword clue is the 5 letter word POLYP

I've seen this crossword clue in Independent
P
O
L
Y
P


Buddy explains!

The straight part
We know that "It could be a sea anemone" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case it could be a sea anemone = polyp.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does POLYP mean?

POLYP noun
  1. An abnormal growth protruding from a mucous membrane
  2. A cylindrical coelenterate, such as the hydra, having a mouth surrounded with tentacles

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